Winger Raheem Sterling has signed a new long-term contract with Liverpool.

Sterling put an end to growing speculation about his future by formally agreeing to the new deal on Friday afternoon. Liverpool have declined to reveal how long the new contract is for, although reports have indicated it is a five-year deal worth around £40,000 per week.

There had been speculation that Sterling, 18, was at loggerheads with the Merseyside club about his contract demands - with reports suggesting he had demanded parity with out-of-favour pair Jordan Henderson and Stewart Downing - but after negotiations were concluded the former QPR academy player expressed his gratitude at being able to remain at a club like Liverpool.

"It's every 18-year-old's dream. I'm just really grateful to be at such a big club like this," Sterling said. "There's a lot more to be done.

"I haven't begun yet, as the manager has said. Hopefully I can kick on after the New Year and try to do my best for the team and the football club."

Sterling joined the club from QPR at the start of 2010, before making his first-team debut under Kenny Dalglish at the end of last season. But it is the arrival of Rodgers that has seen his Anfield career really take off; Sterling making 25 appearances for the club already so far this season - earning an England cap in the process.

Liverpool managing director Ian Ayre added: "This is another positive step forward for the football club in securing the long-term future of one of the country's brightest young talents.

"The negotiations were very positive and both parties acted in a very responsible way to reach an outcome that benefits both Raheem and Liverpool FC.

"Since the summer, Luis Suarez, Daniel Agger, Martin Skrtel, Jonjo Shelvey and Suso have all signed new long-term contracts and it's a clear indication of our intent to keep the players we believe are crucial to bringing success on the pitch.

"It also shows the belief the players have in the vision and leadership of Brendan Rodgers and everyone at this football club."